Fiscal, revenue deficit targets will be met: FM

Finance Minister P Chidambaram today said 'front-loading' of expenditure was responsible for higher deficit numbers in the first quarter, but expressed confidence of meeting the fiscal and revenue deficit targets for the financial year.

"The expenditure is being front-loaded. Because there are two major programmes, where 50% of the funds to be devolved to states are given in the month of April. This expenditure is being front-loaded", Chidambaram said in response to questions here.

"I am absolutely confident that, as of present, we will meet the fiscal deficit target as well as the revenue deficit target", Chidambaram said.

According to the finance ministry's Quarterly Review of Government finances tabled in Parliament on Friday, the gross fiscal deficit during April-June 2006, at Rs 77,740 crore, was 42.6% higher than the Rs 54,517 crore in the same period in the previous fiscal.

Revenue deficit was Rs 70,675 crore compared to Rs 47,311 crore and the primary deficit Rs 48,126 crore compared to Rs 28,089 crore.

Asked how the Government intends to deal with pressure from Left parties on the proposed banking voting rights bill, he said "there is no pressure from the Left."

Chidambaram, however, said: "We are still discussing one clause... whether the voting cap of 10% should be removed or whether the voting rights should be made proportionate to shareholding rights...Discussion is still underway".